Cannvas Acquires Strategic Rights to True Focus Product, Opens SA HeadQuarters
Garners Exclusive License for Marketing and Distribution of Cannabis Overconsumption Treatment Across South America and Select European Markets
TORONTO, July 30, 2019 /CNW/ - Cannvas MedTech Inc. ("Cannvas" or the "Company") (CSE: MTEC) (Frankfurt: 3CM) (OTCPK: CANVF), a leading digital cannabis education and analytics company, is pleased to announce that it has entered into a definitive share exchange agreement (the "Agreement") with 1216165 B.C. Ltd. ("True Focus International" or "TF International") thereby obtaining the exclusive licensing rights for the marketing, development, and distribution of True Focus' product suite and proprietary intellectual property ("IP") portfolio across South America and in select markets throughout Europe for a period of 10 years. True Focus' all natural, nutraceutical formulations are delivered via an oral spray treatment and are aimed at mitigating the effects of THC overconsumption. The True Focus proprietary formulation is considered 'patent-pending' by way of a United States Patent and Trademark Office ("USPTO") patent application. Through its Cannvas.Me and Cannvas Data platforms, the Company plans to expand the True Focus brand into strategic and emerging regions where CBD is legal.
"Just as Cannvas identified a gap in credible cannabis education and filled that void with our unbiased Cannvas.Me educational platform, we recognize the need for active and potential cannabis consumers to have a safety net in case of overconsumption and True Focus mitigates that risk with a discreet and portable oral spray," said Steve Loutskou, Chief Operating Officer, Global Markets, Cannvas MedTech. "We are thrilled to bring True Focus into the fold with our suite of Cannvas products and services and expect to announce more positive developments with the Cannvas brand in the near future."
True Focus' all natural nutraceutical product formulation may assist in the mitigation of the negative side effects associated with excessive THC consumption. Delivered via a pocket-sized and user-friendly spray bottle, True Focus is ingested sublingually, allowing it to directly enter the bloodstream and be processed within minutes. Made with high-quality natural ingredients and with a refreshing pineapple citrus flavour, each bottle of True Focus contains multiple doses to discreetly deliver relief whenever and wherever needed.
Cannvas plans on leveraging its industry-leading analytics focused on pre-transactional consumer behaviour patterns to expand the True Focus brand across Europe and South America, where it has already set up a physical location in Medellin, Colombia, for its South American headquarters.
South America is ripe for investment with 600 million potential customers, low-cost agricultural exports and growing acceptance to legalizing cannabis. According to research by Prohibition Partners, the Latin America cannabis industry is projected to grow to $12.7B USD by 2028, with approximately $8.5B USD of the market value to come from medical cannabis alone. In addition, 10 of the 11 countries reviewed in Prohibition Partners' report have legalized medical cannabis in the last two years, with the exception being Panama. Chile and Mexico are seen as the main drivers of growth in the medical sector over the next ten years - Chile legalized medical cannabis in 2015 and Mexico in 2017.
The acquisition of TF International is a key strategic move for Cannvas as it pursues strategic collaborations with European entities active in the cannabis and health sciences space, including health clinics and pharmacies, insurance and government agencies, and medical and educational institutions. Having recently announced expansion plans across the European market, and further to its announcement in 2018 regarding expansion into Germany, Cannvas is exploring ideal locations to potentially set up operations in one or more central European locations, pending the outcome of ongoing high-level conversations with potential EU partner organizations.
Brightfield Group projects Europe's legal medical cannabis sales to reach nearly $8 billion by 2023, while London-based Prohibition Partners forecast the European medicinal cannabis market to be worth US$65.6 billion by 2028. Prohibition Partners believes the number of patients in the three biggest European markets – Germany, Italy, and the Netherlands – will rise from 130,000 in 2018 to 225,000 in 2019, with the cannabis industry in those three countries alone to be worth U$20.4 billion by 2028. The market intelligence agency says a lack of cannabis education has impeded patient access to cannabis in European countries such as the UK, setting the stage for strong growth of the Cannvas.Me digital cannabis education platform.
With operations in California, Florida, Nevada, Pennsylvania and New York, True Focus' all natural nutraceutical product formulation mitigates the negative side effects associated with excessive THC consumption. Delivered via a pocket-sized and user-friendly spray bottle, True Focus is ingested sublingually, allowing it to directly enter the bloodstream and process within minutes. Made with high-quality natural ingredients and with a refreshing pineapple citrus flavour, each bottle of True Focus contains multiple doses to discreetly deliver relief whenever and wherever needed.
Cannvas is expected to meet the True Focus purchase price for of $4,000,000CDN through the issuance of 20,000,000 shares in the Company's stock at an aggregated price of $0.20 per share, with the transaction expected to close within 14 days. The Company will pay a finder's fee of common shares on this transaction.
Cannvas additionally issued 2,800,000 common shares at a deemed price of $0.23 per share to insiders for achieved milestones.
Additionally, the Company announces that it has granted incentive stock options to purchase a total of 1,650,000 common shares at an exercise price of $0.23 per share for a period of one year to certain directors, officers and consultants in accordance with the provisions of its stock option plan.
About Cannvas MedTech Inc.
Cannvas MedTech is a leading digital cannabis education and analytics company delivering accessible and evidence-based education while harnessing the power of data to paint a clearer picture of cannabis consumption across Canada.
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
SOURCE Cannvas MedTech Inc.
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